In the construction sector, several trends are already apparent and expected to persist. The rising cost of raw materials is one of them. Since August 2021, raw material costs have climbed by more than 100%. Utilizing IoT technology is another development that will enhance connections and assist in cost savings.
The average cost of an EV’s raw materials in May was $8,255. This rises from $2,000 in March, primarily due to increasing lithium, cobalt, and nickel prices. Batteries must be made using these raw components. But even before these raw materials’ costs surged, the cost of conventional cars with internal combustion engines increased by 106%. The most costly raw materials in August were steel and aluminium, but they are now only about a third of the price.
High prices in the global economy are primarily a result of rising input costs. Due to supply limitations, companies find making items at cheap rates challenging. As a result, producer prices have increased in most economies. For instance, the manufacturing producer price index in the US increased from 110 in August to 127 in September. This suggests that the global economic recovery has peaked and that supply limitation will probably last until 2022.
Due to a severe lack of trained personnel, labor costs have increased in the construction sector. This has led to higher property prices, longer development durations, and more extraordinary construction expenses. As a result, the increased labour cost has caused many builders to worry. Since 2011, the scarcity has increased by more than 25%, and by 2022, it is anticipated to become more problematic.
The supply and demand chains in the construction sector are interconnected. As a result, a labor mismatch might impact the supply chain and project life cycle. For instance, project owners estimated 25% delays and incompletes in late 2021, partly due to the difficulties in hiring experienced labor.
Construction enterprises will be able to monitor their workforces more efficiently and decrease the likelihood of accidents due to the use of IoT. Wearable technology, for instance, is an excellent tool for tracking the health of construction workers. Additionally, it can notify management of risky situations. Smart glasses can also be used to check the requirements of building sites.
Although the construction sector has been sluggish in accepting new technologies, owners are starting to take notice of IoT devices. Moreover, companies have just begun to understand the advantages of adopting these gadgets: some claim maintenance expenses have gone down, a massive plus for building contractors.
Reduced building costs and quicker construction times are only two of the numerous advantages of modularization. In addition, modular construction may increase energy efficiency and save maintenance costs by eliminating 80% of the work that must be done on-site. Additionally, more sustainable is modular construction. It can be recycled to construct new structures and requires less water and energy.
Modular construction also has the advantage of fitting into small urban locations. However, staging and transporting items may be a significant nuisance. It might cause theft in addition to being a hassle for employees. On the other hand, constructing modules in a factory can improve the cleanliness and security of construction sites. Additionally, they provide additional room for workers to walk about.
The need for competent laborers is growing, and a technological revolution is also occurring in the construction sector. Workers may now do their tasks without leaving the office thanks to new technology. For instance, drones may swiftly and effectively conduct job site inspections, spot risks, and capture work-in-progress images. They can even produce models that are built.
With around 13% of the global GDP devoted to it, the construction industry is vital for the economy. Despite this, many construction sites have closed, and those still operating have experienced operational limitations and supply chain disruptions. These difficulties have affected the industry’s performance in the financial indices.
Although automation has long been seen as a promising technology for the construction sector, some significant obstacles are standing in the way of its mainstream implementation. An inadequate workforce is among the most important. Lack of training is another issue. There is also resistance to change. The lack Finally, the lack of an understandable business case is another barrier.
Thankfully, automation has further advantages. One benefit is that it lessens workplace emotional stress and human mistake. Second, it shortens workdays and lowers hazards to employee health. Another advantage is that construction workers may operate the equipment and do minimal jobs while letting machines handle the heavy lifting.